Last week Square came out with a great earnings report and moved up sharply. Today, on the announcement of a vaccine the stock is down because square did great with stay home shoppers. This is still a very strong stock so I took advantage of the stock being down. With the stock in the $186 area I bought 5 Calls with an Expiration out a bit.
I bought 5 SQ 6/18/21 $185 Calls for a premium of $32. I’m looking to make at least $5 on the premium. On 5 contracts that would be $2500. Let’s see what happens.
Buy to Open 5 SQ 6/18/21 $185.00 C @ $32.00 (Delta .62)
I think this is a very safe trade and there’s plenty of time before expiration.. I give it a Risk Factor 2. I hope to be in this position about a week.
Successful trading,
Steve
The Options Coach